Chicago s Business Growth Profile. New and Expanded Companies, 2013

Transcription

1 s Business Growth Profile New and Expanded Companies, 2013

2 World Business Business Growth Profile World Business (WBC) leads s business retention, attraction and expansion efforts and raises the city s position as a premier global business destination. Chaired by Mayor Rahm Emanuel, WBC fosters private sector growth through the advancement of a business-friendly environment that attracts world class talent, and is responsible for the implementation of s Plan for Economic Growth and Jobs. WBC tracks new and expanding companies with a physical address in the metropolitan statistical area that meet at least one of these criteria (applies to leases and new construction): $1M investment, a net gain of 20,000 square feet, a net gain of 50 jobs, a headquarters facility and/or WBC involvement. WBC captures project information at the time of announcement on a rolling basis from media outlets, press releases, company websites, and WBC internal reporting; the quality of each record depends on the availability of data and resources to input and confirm information. Data subject to revision. To submit a business expansion for inclusion in WBC s quarterly Growing feature or next year s Business Growth Profile, please a project description to wbc@worldbusinesschicago.com Mayor Rahm Emanuel, Chairman Michael Sacks, Vice-Chairman Jeff Malehorn, President & CEO

3 New + Expanded Companies 2013 Business Growth in area business expansions tracked by World Business (WBC) represented the addition of nearly 40,000 jobs, 35 million square feet of space, and over $6 billion in investments in 2013, contributing to a top honor from Site Selection magazine as the #1 Metro for Corporate Investment in the U.S. s success can be attributed to its central location and connectivity, extensive talent pipeline, and quality of life. To further that success, s engaged business community has a shared vision for continued growth. WBC is leading the implementation of Mayor Rahm Emanuel s Plan for Economic Growth and Jobs, announced in The large-scale effects of this plan, and its many strategies and initiatives can be seen in the business expansion results: Transportation and Logistics In 2013, s infrastructure supported more container traffic than any port in the western hemisphere, 546 million public transit passengers, 87 million passengers (up 9 percent from the prior year) on flights to over 200 destinations, and 128,000 tons of air cargo (up 5 percent from the prior year), resulting in accolades including best-connected airport from the Massachusetts Institute of Technology. also welcomed the groundbreaking of DHL s largest global forwarding facility in the nation. WBC is helping companies lead the transition to next-generation T+L by launching the Supply Chain Innovation Network of (SINC), an organization exploring public policy, innovation, talent attraction, and collaboration to elevate s competitive advantage across the supply chain. Advanced Manufacturing In 2013, WBC brought together key organizations to develop a scalable platform for manufacturing service coordination across the region and assess workforce needs and training. Also in 2013, Method announced it will open a flagship manufacturing facility that will bring nearly 100 manufacturing jobs to. Workforce Companies consistently refer to talent as a key driver in the decision to expand in. WBC is leading the Think initiative to actively recruit talent and engage university and corporate alumni to continue to build a demand-driven, targeted workforce. Innovation and Entrepreneurship s innovation ecosystem has grown rapidly, with more than $1 billion invested in startups in 2013, a 169 percent increase from 2012, according to Built In. Since 2011, WBC has worked with more than 100 info/digital/ media companies including (in 2013): Gogo in-flight wireless provider, Google, and Grainger e-commerce. To build on this momentum, WBC launched NEXT, a dedicated effort to drive growth and opportunity in the business climate related to science, technology, innovation and entrepreneurship. By summarizing the success of local companies and providing insights from the WBC Business Development team, the following pages detail how the regional economy has grown in the past year.

4 World Business Business Growth Profile Metro by the Numbers 677 projects 38,051 jobs $6.0B investment 34.9M square feet Nearly 1/2 are companies that have relocated from outside the region or added a new facility to their presence in. Refers to data for new and expanding companies with a physical address in the 14-county region that meet at least one of these criteria: $1M investment, a net gain of 20,000 sq ft, a net gain of 50 jobs, a headquarters facility and/or WBC involvement. WBC captures project information at the time of announcement from media outlets, press releases, company websites, and WBC internal reporting on a rolling basis; the quality of each record depends on the availability of data and resources to input and confirm information. Data subject to revision.

5 New + Expanded Companies 2013 Industry Impact Manufacturing Professional, Scientific & Technical Services Finance, Insurance & Real Estate 7,786 5,858 S C confirmed regionwide confirmed regionwide ,307 new & retained jobs confirmed regionwide Other * Education Information 3,732 3,700 S C 2 9 confirmed regionwide confirmed regionwide ,661 new & retained jobs confirmed regionwide Retail Wholesale Trade Administrative, Support & Other Services 3,455 1,937 S C confirmed regionwide 82 8 confirmed regionwide ,041 new & retained jobs confirmed regionwide Healthcare & Social Assistance Transportation & Warehousing Arts, Entertainment, Accommodation & Food Services S C 19 6 confirmed regionwide confirmed regionwide new & retained jobs confirmed regionwide S: C: Suburban (city) * Includes public administration (2,500 jobs), management of companies (700), construction (442), mining (60), utilities (30)

6 World Business Business Growth Profile WBC Company Highlights Gogo LLC HQ relocation from suburbs 500+ jobs created and retained 230,000 sq ft total City Focus City Development Notes Referred to as the Hottest Urban Center in the U.S. by Crain s Business, welcomed 217 new and expanding businesses in 2013 nearly a third of the region s total comprising 4.6 million square feet of added space, 21,312 new and retained jobs, and $3.0 billion in investment. Of these, 61 were headquarters, 12 were suburb-to-city moves, and 119 were specific to the Central Business District (see map, below). With 1,088,765 total jobs in 2013, the city of had more employment opportunities within its borders than the entire metropolitan regions of San Jose, CA, Austin, TX, and Portland, OR. Startups continued to fuel a technology submarket west of the Loop, for which real estate consulting firm CBRE reported an average vacancy rate of less than half the overall market. Google s announcement to move its 500-person office to W. Fulton Street, coupled with spillover from River North, pushed the tech corridor westward. Assisted Living Concepts HQ relocation from WI 100 new jobs Coeur Mining HQ relocation from ID $11 million investment 60 new jobs 30,000 sq ft total

7 New + Expanded Companies 2013 International Reach Foreign Direct Investment (FDI) WBC Company Highlights The number of tracked international companies new to, or expanding in, increased from 80 in 2012 to 114 in Approximately 40 percent of the region s international investments were made within the city. The following table, while not necessarily exhaustive, summarizes major international projects by country and industry. Country Projects Jobs Sectors Germany UK Japan 11 1,127 Canada Ireland France China 5 41 Other 44 4,674 Targeted Approach Mgmt. consulting, engineering, trade show organizers, data processing & hosting, telecomm., air transp., rail transp. support activities, freight transp. arrangement, supermarkets, merchant wholesalers, kidney dialysis centers, fiber optic cable mfg., measuring device mfg., metal mfg., organic chemical mfg. Office admin. services, mgmt. consulting, market research, certified public accountants, computer systems design, insurance carriers, data processing & hosting, hotels, warehouse mgmt. systems software, software publishers, logistics, gasket & sealing device mfg., distilleries, marketing & sales Advertising, industrial equipment wholesalers, metal wholesalers, hose mfg., steel mfg.,, photographic equipment mfg., broom & mop mfg., toy & game mfg., motor vehicle transmission & power train parts mfg., plastics product mfg., inorganic chemical mfg. Advertising, engineering, mgmt. consulting, commercial banking, line-haul railroads, health supplement stores, metal wholesalers, fertilizer mfg., wineries, water & sewer line construction Mgmt. consulting, data processing & hosting, medical equipment wholesalers, hardware wholesalers, grocery wholesalers, prepared food mfg. Food service contractors, business support services, women's clothing stores, electrical distributors Lawyers, commercial banking, motion picture theaters, air transp., synthetic rubber mfg. Italy (4 projects), Australia (4), Switzerland (3), Finland (3), Singapore (3), Korea (3), New Zealand (2), Sweden (2), Belgium (2), Netherlands (2), Taiwan (2), UAE (2), Denmark (2), India (2), Cyprus (1), Austria (1), Hong Kong (1), Qatar (1), Israel (1), British Virgin Islands (1), Luxembourg (1), Mexico (1) One of the 10 strategies of Mayor Rahm Emanuel s Plan for Economic Growth and Jobs currently being implemented by WBC is to enhance s position as a center for business services and headquarters. Targeted business outreach initiatives are a key part of this strategy, and helped contribute to s ranking as the top metro in North America for FDI projects (IBM, 2013). Bank of China First US branch outside NY and LA 15 new jobs 13,000+ sq ft total Hannover Fairs USA American HQ relocation from NJ 15 new jobs airberlin New nonstop service between Berlin and O Hare

8 World Business Business Growth Profile WBC Company Highlights WBC Observations WBC staff worked directly on 134 expansion and relocation projects and successfully closed 45 projects that added and retained 4,270 jobs across the region in Trends noted throughout the year include: Connected Health New HQ 85 new jobs 4,500 square feet total DMC, Inc. HQ expansion 20 new jobs 5,000 sq ft added 12,000 sq ft total Power Construction HQ relocation from suburbs 200 jobs created and retained 35,000 sq ft total Continued HQ Migration to the growth of headquarters remained strong, with 61 companies choosing to relocate or expand their central operations in the city of, bringing or retaining nearly 6,000 employees. More than 60 percent of WBC s successfully completed projects last year were classified as headquarters relocations or expansions. Building on the region s position as a global headquarters center with 30 Fortune 500 companies, the city began the year with Coeur Mining s announcement that it was relocating its headquarters with 60 jobs from Coeur d Alene, ID to. This was followed by Gogo s mid-year decision to move its suburban headquarters to downtown. And as 2013 came to a close, agribusiness giant ADM announced the decision to relocate its headquarters, including roughly 100 employees, from downstate Decatur to, further solidifying the city s position as a nexus for headquarters. Continued Growth and Recognition as Tech Center Tech companies have also increasingly decided to locate in. In 2013, more than one third of the companies WBC successfully recruited to locate or expand in were in the technology space (including hardware, software, internet, e-commerce or other related operations). Successes include large companies such as Grainger, Hyatt, and Medline, which moved technology operations downtown. They also include operations for up-and-comers such as AppGravity, Belly, and FieldAware. Indicative of this activity within the infotech sector, IBM ranked as a top location for software development in its 2013 report on the world s most competitive cities. s Advantages Drawing on feedback from firms that located or expanded in the city in 2013, WBC continues to find that markets and access to talent are among the most frequently given reasons for choosing. These unique attributes and the city s many other competitive advantages prompt companies to expand and relocate in and have led to the city taking Site Selection s Top Metro title for 2013.

9 New + Expanded Companies 2013 WBC-Assisted Companies WBC Company Highlights Company Industries Emnos USA Corp. New North American HQ for German co. 30 new jobs 8,300 sq ft total Reasons for Locating in Swisse Vitamins New North American HQ for Australian co. 100 new jobs 4,000+ sq ft total Includes data (where disclosed) for companies (closed projects) that WBC assisted in Projects classified according to WBC-defined industry groups. Multiple expansion reasons may be reported for individual projects. Method First US manufacturing facility $39 million investment 65 new jobs 150,000 sq ft total

10 World Business Business Growth Profile Attracting Outside Investment Over half of 2013 s business expansions in the city of were from companies that were new to the region or adding a new facility to their existing presence. Illustrated below, new companies to the region came from across the globe. Menomenee, WI Canada Brookfield, WI Canada (3) Germany France China Coeur d Alene, ID United Arab Emirates Clinton, MA Menlo Park, CA Santa Clara, CA Monterey, CA Dallas, TX San Jose, CA Princeton, NJ Sweden United Kingdom (2) Switzerland Italy (2) Belgium Germany (3) Austria Japan Qatar China (3) Singapore New Zealand Australia New York, NY (2) Newtown, PA Reston, VA Tucson, AZ Belgium Hidalgo, TX Champaign, IL Atlanta, GA

11 New + Expanded Companies 2013 For More Information World Business 177 North State Street, Suite 500, IL WorldBusiness.com Media inquiries: Karley Sweet, ksweet@worldbusinesschicago.com, Liz Jellema, Research Director Wendi Taylor Nations, Chief Marketing Officer Sources This brief was compiled from the following sources: Area Development Online BidClerk/Crains Construction Pipeline Bisnow.com Biz Journals BizTimes The Business Journal Business Wire CBRE CBS Business Journal Grid Sun-Times Tribune chicago.gopride. com City of City of Rolling Meadows Colliers Conway Data Cook County Recorder of Deeds CoStar Crains Business Curbed Daily Herald Des Plaines Patch Digital Journal Duke Realty Examiner fdi Markets FedEx GlobeSt.com Hoovers Illinois Department of Commerce and Economic Opportunity IndyStar Jones Lang Lasalle Kenosha News Lee & Associates LoopNet MarketWatch MarketWire NAI Hiffman NAIOP Northwest Indiana Business Quarterly Northwest Indiana Times NREI Online PaineWetzel Patch Plastics Today PostTrib PR Newswire PRWeb RealtyTrac REJournals Site Selection Impact Report Southland Business Village of Bartlett World Business Photographs Cover: Monroe Building (Coeur Mining): Flickr user UIC Digital Collections Gogo LLC: Sterling Bay Companies Assisted Living Concepts: savvytours.com Coeur Mining: Flickr user UIC Digital Collections Bank of China: CoStar Hannover Fairs USA: BOMA airberlin: Department of Aviation Connected Health: Wicker Park and Bucktown Chamber of Commerce DMC Inc.: LoopNet Power Construction: LoopNet Emnos USA Corp.: Hines Swisse Vitamins: LoopNet Method: Flikr user Geno

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